Competing with Million Dollar

Marketing Budgets

In 2014, Priceline Group increased its advertising spending to hit $2.6 billion while

Expedia Inc.’s advertising jumped to $1.6 billion1.

15-30%Average commission OTA’s now charge hotels2.

Branded Hotels Fight Back

Hilton: Stop Clicking Around

Marriott: It Pays to Book

Direct

OTAs will represent 58% of US independent properties’ online volume this year, compared to a 48% share for chains3

Independent Hotels

Branded Hotels

58% 48%

3 Ways Independent Hotels Can Maximize Budget

Finding A Niche

Using Segmentation

Creating A Marketing Mix

1.Find Your NicheWhat Makes Independent Hotels Unique? Their Independence

Market their uniqueness. Travelers now expect for their hotel to have as much character as their vacation.

Hotels Should

80 MillionBookings through Airbnb in 20154

The rise of Airbnb has validated the consumer’s want for more unique and personalized experience.

2. Use SegmentationIndependent hotels know their clientele better than any brand.

Use data + segmentation to produce content directly focused on each segment of guest.

Hotels Should

70%Of consumers now expect personalization5

From the booking process to in-stay and post-stay marketing campaigns, marketers at the independent level are able to

better communicate their guest’s needs and wants.

Implement A Marketing MixOver the last three years, the hospitality industry has seen a boom in the amount of technology providers focused on hotels

Create a mix of tools and platforms to create the most effective digital experience for their guests.

Hotels Should

62%# of Millennials who say online content drives loyalty6

Determining the guest behavior will tell hotel marketers which tools to implement for a strategy focused on their

niche and personalizing the experience for guests.

Learn More

1.https://skift.com/2015/02/20/priceline-and-expedias-advertising-arms-race-in-2014/

2.https://skift.com/2016/04/25/everything-you-ever-wanted-to-know-about-hotel-industrys-complaints-against-otas/

3.https://www.tnooz.com/article/independent-lodging-break-from-OTAs-Phocuswright/

4.http://venturebeat.com/2015/09/28/airbnb-bookings-reportedly-expected-to-double-to-80-million-this-year/

5.http://www.momentology.com/3362-70-of-consumers-want-more-personalized-shopping-experiences/

6.http://www.businesswire.com/news/home/20150212005205/en/NewsCred-Study-Reveals-62-Millennials-Feel-Online